The Indian rupee strengthened against the U.S. dollar in evening deals on Thursday, as regional stocks rallied after the expected Fed rate hike, while it assured that further hikes will be only gradual.
The Fed on Wednesday raised the target range for the federal funds rate to 0.25 to 0.50 percent, citing improving economic outlook. It also said monetary policy remains accommodative even after the rate hike.
The benchmark index BSE Sensex ended higher at 25,804, up 309.41 points or 1.21 percent, while the broader Nifty index closed up 93.45 points or 1.21 percent at 7,844.
The rupee climbed to 66.41 versus the greenback, its highest since November 26. If the rupee rises further, 65.00 is possibly seen as its next resistance level. The pair was worth 66.45 when it ended Wednesday’s trading.
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